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Mid-December Hedge Fund Performance Update - Bloodbath
We already know 2011 was horrible for hedge funds, for Wall Street bonuses, and soon, for luxury retailers. So before we write off 2011 for good, here is the penultimate HSBC report (#52) showing HF performance through mid-December. Some notable mid month numbers: Moore -0.05%; Caxton: -0.09%; Clive: -1.22%; York: -1.20%; Third Point: -1.80%; Pershing Square: -0.70%; Perry: -2.94%; Owl Creek: -1.70%; Highbridge: -2.11%; Landsdowne: -0.89%; Viking: -0.57%; Maverick: -3.08%; Kingdon: -0.77%; Marshall Wace: -0.23%; Odey: -5.34%; Canyon: -0.30%; As for Paulson... oh well.
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Looks like they're hard at work trying to correct their performance in the second half of December...
Half these dipshits spend their time trying to figure out when QE3 hits... FAIL.
Considering currency devaluation, I'm way ahead of them doing hardly nothing at all...little hamster wheels...lol.
I'm sure they have some pretty impressive plaques on their walls though ;-)
When you fail to beat S&P500 you come up with excuses....
When you fail to beat US Treasuries (TLO), you wonder how stupid is the rich idiot with his money still in the fund?
How fortunate for governments that the people they administer don't think. - Fuhrer Adolf Hitler
How fortunate for governments that the people they administer don't think. - Fuhrer Adolf Hitler
Hedging models don't work anymore with biflation. Alpha dead, beta swings wildly. Like trying to stay balanced standing in quicksand.
And with their usual perfect timing to allocate capital at the end of a cycle, the nation's pension capital continues to be steered towards more alternatives in unison. Only Malvern, PA can be happy with all of this... rather, how it will end.
<p>Miranda Kerr wishes all these managers happy holiday's from the beach - #http://hedge.ly/gFWVSm</p>
A loss of 0.05 percent is notable? a bunch of losses under 1 percent makes a bloodbath? really? A bit melodramatic, don't you think?
Because the whole idea of a hedge fund is to beat the market? An index fund without the HF fees would have been way ahead of these guys.
Virtually every single prominent hedge fund in the red... no, not melodramatic.
Nice to see fat face Odey getting his snout ripped off in the trough. Revolting creature.
Steven Cohen is a prominent hedge fund manager. He returned 8% in 2011: http://blogs.reuters.com/unstructuredfinance/2011/12/23/the-guy-who-is-killing-it-at-sac-capital/
David Einhorn is a prominent hedge fund manager. He is up 5% in 2011: http://www.reuters.com/article/2011/12/20/us-greenmountain-einhorn-idUSTRE7BJ1JT20111220
Jim Simons' RIEF is up 32% and Halvorsen's Viking Global is up 7.8%: http://www.insidermonkey.com/blog/2011/12/13/hedge-fund-performance-in-november/
Why didn't they buy gold in January, when it cratered? They could've taken a holiday for the rest of the year and claimed a 25% profit at Christmas Eve. Imbeciles!
If you had invested in Gold with MF Global you would have lost it.
Maybe they did. Hence the gold sell off to make some profit for their bonuses lol
contrarian trading my ass!
Yep, weird how most of em make money in a bull market and fukc up in flat or bearish markets..
Of course the HFs collect their maintenance fee regardless of performance. Nice racket if you can get in on it.
Why don't we just rename most of these things Beta Funds? Or, "rip off already broke pension fund" Funds? The real question, often bought up here, is Alpha dead or is it easier chasing Beta and ripping off for a living. Probably a mix.
I don't really get the anti HF tune around here. Don't most of the people here work at a HF or at least manage their personal funds like one? All Hedge Fund means is that you arent a slow, long only, benchmarked mutual fund.
I think people are just pointing out the humor in takIng management fees for managing (read: losing) people's money.
You don't get it? There are likes and dislikes here. Likes are guns, gold, goulash, and good ole Dr. Paul.
Dislikes are just about everything else.
Regarding HFs, there is a lot of misunderstanding, stemming from the name itself, which is a bit of a misnomer. The drop off in performance this year---especially from the long-in-the-tooth traders who have a twenty year average of +15-20% (stat wonks can calculate the odds of such outperformance)---is indicative of several things. First is the decreased volume at a time when some of these funds manage tens of billions. Second is the lack of clearly trending markets. Third---and some here will disagree---is that authorities are disrupting the natural ebb and flow of emotion-based markets and HF managers in general are not privy to authorities' plans to anywhere near the same extent as TBTF banks, if at all.
Many here like to compare their own performance to that of "2 & 20" types, forgetting or overlooking that it is a little more difficult to move twenty billion dollars than a million dollars. "Should have just bought gold" is often said, which overlooks the fact that many of these large funds began loading up in 1999-2000, in both physical and futures, and were the primary source of gold's great decade. They move markets. Sometimes these guys sell, either because for many PMs are just a trade, or because they want to keep PMs a set percentage of their overall portfolio (which means they sell into rising markets and sell when other of their assets fall).
The big HFs and HNW individuals could have a major impact on PMs next year, for good or bad, so they bear watching. Central banks are battling fires in their own economies and may not have the firepower to buy more (Russia may continue to add, but they are adding not from purchases, but rather from domestic production). China and India are having economic troubles, so their populations may be short of cash. Small PM buyers in the West are already long...at least those who have discretionary capital.
Finally, one of the most hated people carried out one of the year's best trades. This would be George Soros' exit from much of his physical and paper gold position, affected when PM sentiment was at its peak. After returning all of his investors' cash ($1 billion) "all" he had left was Soros family money ($24 billion). He took advantage of price and volume to unload his position.
The greenie (like you care...lol) is mine.
"Many here like to compare their own performance to that of "2 & 20" types, forgetting or overlooking that it is a little more difficult to move twenty billion dollars than a million dollars."
Yes, it is. Being small and nimble is something that is often overlooked.
I look at it as a series of sprints without boundries with a goal in mind as opposed to a marathon confined within a stadium filled with gushing adoring fans.
Its liberating ;-)
Paulson will buy more BAC and hope for a daily double.
Time to levitate the market and give these poor souls some black ink. God forbid, the hedge funds and thier filthy rich investors not be able to get some capital gains. I'll be Santa gives 'em some love. You know, like 500 or so point in the last 4 days with shit volume.
so what's that mean for aggregate tax receipts for the capital gains? let's see... 15% of 0 is.... hmmm?
Oh well congress, no QE-driven tax receipt bump for you, better luck next time.
How did Kyle Bass do?
Eclectica Absolute Macro Fund: +0.7% since 1 Dec, +8.3% since 1 July 11. :s
http://www.eclectica-am.com/report.aspx?target=fundlist&sub=stats&repId=21
Need to get some of that.
Didn't he bet the farm on the CSI and Hang Seng collapsing? IMHO he's done his bollocks on this, reached close to bottom..
From what he says he tends to have quite a few macro bets going; perhaps those still have legs...
ah, nothing like a bloodbath before the holidays, cheers!
Eclectica are really starting to get some fund flows as they are one of the few funds out there that is genuinely uncorrelated. Shame really, I'd rather the fund stayed small!
One of the most interesting things I'm seeing is that the guys who have done badly are doubling up on their bets. This strikes me as odd given usually hedge fund managers are very risk conscious. Crispin Odey and Bruce Berkowitz just keep adding more financials - they are either mad or brilliant.
http://kelpie-capital.com/2011/12/22/2012-outlook-predictions/
Paulson has 3 of the WORST 10 performers including THE worst. LMFAO
Without Madoff's hedge fund of hedge funds's guaranteed 10% returns, they are all toast.
Hedge fund manager: You made all that moeny without knowing what you were doing. I will show you how to make money by knowing what to do. Trust me. I am a professional.
What's dramatic about these numbers, Paulson notwithstanding? Keep your losses small in shit years and make big gains when you can. Measuring hedge funds on whether they beat the spx in a single year or not is bullshit. If they can't get you better risk adjusted returns over time, that's something else.
I'm up over 15% since last March; there's only one way to achieve that, Physical commodities.
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Physical commodities might be worth a lot in the case of an economic crash.